Binance founder and former CEO Changpeng Zhao (CZ) has publicly apologized for what he called a “poor decision” and took “full responsibility” for his actions.
Meanwhile, Binance co-founder He Yi said that while she acknowledged that CZ may have made mistakes, his biggest mistake was “ignorance.”
CZ issues apology and asks for a second chance
Changpeng Zhao is scheduled to be sentenced on April 30, following a settlement with the U.S. Department of Justice (DOJ) in November 2023. Although CZ previously waived his right to appeal any sentence of no more than 18 months, the DOJ is now seeking a 36-month prison sentence for him.
In a letter to Judge Richard A. Jones of the United States District Court for the Western District of Washington on April 24, Zhao acknowledged his past oversights. He recognized the need to implement compliance changes at Binance as soon as possible and emphasized the strict controls that were subsequently incorporated during his tenure.
CZ further emphasized his voluntary surrender and acceptance of responsibility in the ongoing case, and expressed his desire to resolve the matter in court to seek new opportunities.
However, Binance co-founder Changpeng Zhao asked for a second chance in the face of legal action and reflected on his unusual career path, which was characterized by simplicity and integrity, including initiatives to return investor funds after failed startups. In addition, he described his involvement in the cryptocurrency space as driven by the philosophy of inclusivity and equal opportunities, aiming to support small biotech labs and youth-centered initiatives in the future. This shows that Changpeng Zhao is not only concerned about commercial success, but also committed to social responsibility and the positive development of the industry as a whole.
Binance co-founder says CZ’s mistakes stem from “ignorance”
He Yi, co-founder of Binance and mother of Zhao's three children, described him as a guardian of the cryptocurrency industry and likened the industry to the Wild West. She pointed out that as a startup without a brilliant background, the founding team, including herself, lacked legal expertise, and most team members except Zhao Changpeng could not read English. This showed that in the early stages of Binance's development, the team had certain limitations in terms of law and language, which may have contributed to some of the problems later.
Despite limited experience and legal knowledge, Changpeng Zhao (CZ) has earned the trust of users through his fairness, integrity, and strong sense of responsibility to the industry, despite making mistakes along the way. At the same time, both Binance and CZ have borne the consequences. This reflects that even in the face of challenges and mistakes, CZ's leadership and the Binance team have won the support of users through adherence to principles and a strong sense of responsibility to the industry, and have taken responsibility for their actions.
Meanwhile, in the clemency request, the case mentions Changpeng Zhao’s (CZ) family members, including his wife and two children who are studying at US institutions, and his sister, who was once a managing director at Morgan Stanley. This information may be used to present CZ’s personal circumstances and family responsibilities to support a more lenient request for his sentence. By mentioning family members, it may be intended to emphasize his family ties and commitment to his family, which is sometimes seen as a positive factor when assessing a person’s character and responsibility.
Jessica Zhao, Changpeng Zhao's sister, acknowledged CZ's mistakes and emphasized his commitment to altruism. She specifically mentioned the dispute with FTX and pointed out that CZ is committed to maintaining the integrity of Binance, showing this by avoiding the misuse of customer funds. Jessica Zhao's statement may be intended to gain sympathy points for CZ in the legal process, while highlighting his respect for ethical and legal norms and his commitment to protecting the interests of his customers. By mentioning the dispute with FTX, it may also be intended to provide a contrasting context to show CZ's ethical stance in the industry.
Notably, Binance settled charges of anti-money laundering and sanctions violations in the United States late last year, resulting in a fine of up to $4.3 billion and regulatory oversight by authorities. This marked one of the largest enforcement actions in the history of the U.S. Treasury Department and a major turning point for Binance, requiring the company to adopt stricter compliance measures and make significant changes to its operations. #赵长鹏 #法律诉讼